BREAKING NEWS: European Commission Unconditionally Approves FedEx Acquisition of TNT
FedEx Corporation and TNT Express have obtained the unconditional approval of the European Commission for the acquisition by FedEx of TNT.
After an investigation, the European Commission concluded that the deal does not raise any competition concerns because FedEx and TNT are not particularly close competitors and because the merged entity will continue to face sufficient competition from rivals.
“Many businesses and consumers rely heavily on affordable and reliable small package delivery services, in particular with the growth of ecommerce,” said Margrethe Vestager European commissioner in charge of competition policy. “Therefore, the commission has thoroughly assessed the markets affected by this takeover. The conclusion is that European consumers will not be adversely affected by the transaction. We have therefore unconditionally approved the merger.”
“We are extremely pleased to receive the European Commission’s unconditional approval,” said David Binks, Regional President Europe, FedEx Express. “We believe the combination of TNT Express and FedEx will provide significant value to the employees, customers and shareholders of both companies.”
In a joint press release, FedEx and TNT Express said they continue to work with the regulatory authorities to obtain clearance of the transaction in the remaining jurisdictions, including Brazil and China. “FedEx and TNT Express are making timely progress,” the joint statement said.
The companies anticipate that the acquisition will close in the first half of 2016.
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